ORGANIZATIONAL

CHANGE AND ITS

EFFECTS

Subject : PA 215 – Management of Organizational Behavior

Instructor : Prof. Alberto A. Marquez

Group 6 : Mr. Bon Carlo Melocoton

Ms. Jean Kenneth Alonto
Ms. Malieha Upam
Ms. Arianne Joy Escamilla
Ms. Lady Ann Abella
REPORTED TOPICS:

Part I : Forces for Organizational Change

• Mr. Bon Carlo Melocoton

Part II : The Process of Organizational Change

• Ms. Jean Kenneth Alonto
• Ms. Malieha Upam

Part III : Organizational Development Interventions

• Ms. Ariane Joy Escamilla

Part IV : Special Issues in Organizational Development

• Ms. Lady Ann Abella
PA 215 – TOPIC 6
ORGANIZATIONAL
CHANGE AND ITS
EFFECTS
 OBJECTIVES
❑ Distinguish between different types of change in
organizations, giving examples of each.
❑ Identify the three main ways in which organizations
may change.
❑ Identify the general conditions under which
organizational change is likely to occur.
❑ Describe why people are resistant to change in
organizations and ways in which this resistance
may be overcome.
 OBJECTIVES
❑ Define organizational development.
❑ Describe four techniques of organizational
development and describe the effectiveness of
each.
❑ Identify the sides of the ethical debate with respect
to using Organizational Development techniques.
 Sub Topics
Forces for The Process of
Organizational Change
Reporter: Bon Carlo Melocoton
01 02 Organizational Change
Reporter: Jean Kenneth Alonto
& Malieha Upam

Organizational Special Issues in

Development Organizational
Interventions 03 04 Development
Reporter: Ariane Joy Escamilla Reporter: Lady Ann Abella
01
Forces for
Organizational
Change
Context:

“The impact of organizational

change can be found
anywhere.”
Context:

“However, most people have

difficulty accepting that they
may have to alter their work
methods.”
Context:

“Fortunately, social scientists

developed various methods that
are designed to implement
needed organizational changes.”
Context:

“With so many companies making

drastic changes, thus, the message
is clear:
either adapt to changing
conditions or shut your doors. ”
Context:
Types or Organizational Change:

- Planned Change
- Unplanned Change
Context:
Planned Change occurs when
deliberate decisions are made in an
organization, while Unplanned
Change is a result of unforeseen
occurrences.
Planned
Change
Changes in Products or Services

Decisions that take new direction to

the business, to add a new, specialized
service which may require new
equipment and supplies, hiring new
personnel, and the like.
Changes in Administrative Systems

Changes that may stem from forces

such as desire to improve efficiency or
to change the organization’s image.
 Changes in Organizational
Size and Structure
Downsizing – reducing the number of employees needed to operate
effectively.

Rightsizing – adjusting the number of employees needed to work in

newly designed organizations.

Outsourcing – hiring outside firms to perform functions traditionally

performed in-house by the organization’s own staff.
Introduction of New Technologies

Advances in technology have

produced changes in the way
organizations operate and altered the
way people do their jobs.
 Advances in Information
Processing and Communication

As communication systems improve,

opportunities for organizational
growth and improvement follow.
Unplanned
Change
 Changing Employee Demographic

Shifting conditions on the change in workforce

that includes factors such as gender, age,
ethnicity, occupation, seniority, salary levels,
marital and family status.
 Performance Gaps

This is one of the key factors providing an

impetus for organizational innovation. Those
organizations that are best prepared to mobilize
change in response to unexpected downturns
are expected to be the ones that succeed.
 Government Regulation

One of the most commonly witnessed

unplanned organizational change results from
government regulations. The government has
been involved in both imposing and eliminating
regulations in business industries.
 Economic Competition in the
Global Arena
This requires organizations not only to compete
in their ability to enter new markets and achieve
economies of scale but also in their ability to
effectively administrate knowledge flows in an
information-based economy.
 Organizational Change
Planned Changes
➢Changes in products and services
➢Changes in administreative systems
➢Changes in organizational size or
structure
➢Introduction of new technologies
➢Advances in information processing
and communication
Unplanned Changes
➢Changing employee demographics
➢Performance gaps
➢Government regulation
➢Economic competition in the global
arena
 THE PROCESS OF
ORGANIZATIONAL
CHANGE
SLIDESMANIA.COM
 The Process of Organizational Change:
Four Basic Questions

1. What are the targets of organizational change efforts?

2. When will organizational change occur?
3. Why is organizational change resisted?
4. how can resistance to change be overcome
SLIDESMANIA.COM
 The Process of Organizational Change:
Four Basic Questions
1. Targets: What is Changed?
-Changes in Organizational Structure
(reassigning job responsibilities)
-Changes in Technology
(thermostats that automatically reduce the building’s
temperature)
-Changes in People
(affix signs near thermostats to refrain occupants from
adjusting it)
-Unfreeze
SLIDESMANIA.COM

-Change can occur

-Refreeze
 The Process of Organizational Change:
Four Basic Questions

2. Readiness for Change: When will Organizational Change

Occur
-the amount of dissatisfaction with current conditions
-the availability of a desirable alternative
-the existence of a plan for achieving that alternative
SLIDESMANIA.COM
3. WHY IS ORGANIZATIONAL CHANGED RESISTED?
When employees are poorly introduced to changes that affect
how they work, especially when they don't see the need for
the changes, they may be resistant. They may also
experience resistance when they haven't been involved in
the decision-making process.

WHAT IS RESISTANCE TO CHANGE?

Resistance to change is the unwillingness to adapt to altered

circumstances. It can be covert or overt, organized, or individual.
Employees may realize they don't like or want a change and resist
publicly, and that can be very disruptive.
INDIVIDUAL BARRIERS TO CHANGE
1. Economic insecurity

2. Fear of the unknown

3. Threats to social relationships

4. Habit

5. Failure to recognize need for change

ORGANIZATIONAL BARRIERS TO CHANGE

1. Structural inertia

2. Work group inertia

3. Threats to existing balance of power

4. Previously unsuccessful change efforts

4. HOW CAN RESISTANCE TO ORGANIZATIONAL
CHANGE OVERCOME

PROBLEM OF OVERCOMING RESISTANCE TO CHANGE CAN BE

HANDLED AT TWO LEVEL

1. At the individual level.

2. At the group level through group dynamics.

EFFORTS AT THE INDIVIDUAL LEVEL

1. Participation and Involvement - Individual will find it difficult to resist the change which
they participated. Prior to making a change, all those persons who are going to the
affected by the change, can be brought into the decision making process

2. Effective Communication - Management should also see that there is a two way
communication between the management and workers so that the so former comes to
know about the reactions of the latter directly without delay.

3. Facilitation and support - means removing physical barriers in implementing change by

providing appropriate training, tools, machinery, etc.

4. Leadership - A capable leader can reinforce a climate of psychological support for change.

5. Negotiation and Agreement - used when costs and benefits must be balanced for the
benefit of all concerned parties

6. Manipulation and Co-optation - Managers can resort to manipulation of information,

resources and favors to overcome resistance.

7. Coercion - may be in form of explicit or implicit threats involving loss of jobs, lack of
promotion and the like

8. Timing of Change - management must be very careful in choosing the time when the
organizational climate is highly favorable to change
EFFORTS AT THE GROUP LEVEL

Darwin Cartwright has identified the following characteristics of group as a means of

overcoming resistance to change:

1. If both the change agent and the people target for change belong to the same group,
the role of group is more effective.

2. If the people have more cohesiveness and strong belonging to the group, change is
easier to achieve.

3. The more attractive the group is to the numbers, the greater is the influence of the
group to accept or resist a change.

4. Group can exert pressure on those factors of the members which are responsible for
the group being attractive to the members. Normally attitudes, values and behaviour
are more common factors determining the group attractiveness.

5. The degree of prestige of a group, as interpreted by the members will determine the
degree of influence the group has over its members.

6. If any attempt is made to change any individual or some individuals who deviates the
group norms there is likelihood of the change attempt being resisted by the group.
KEY TAKEAWAYS

•Resistance to change is the opposition to altered circumstances or modification of the status quo.

•Employees may resist change when they haven't been briefed on the reasons for the change or the
thinking behind the decision-making.

•Listening to employee concerns and ideas will help reduce resistance to change.

•Covert resistance to change can damage the progress of your desired changes seriously as it is
more difficult to deal with the resistance that isn't visible, demonstrated, or expressed publicly.

•When employees believe their input is considered, they are less likely to experience resistance to
change. Smart employers recognize this and collect input before employees are asked to make any
changes.
Organizational
Development
Interventions
Implementing Planned Change
Organizational Development (OD)
- A systematic process for applying behavioral science
principles and practices in organizations to increase
individual and organizational effectiveness (French,
2008)
- A set of social science techniques designed to plan and
implement change in work settings for purposes of
enhancing the personal development of individuals and
improving the effectiveness of organizational
functioning.
20XX Contoso business plan 2
Organizational Development (OD)
- By planning organization wide changes involving
people, OD seeks to enhance organizational
performance by improving the quality of the work
environment and the attitudes and well-being of
employees.

20XX Contoso business plan 3

Organizational Development Techniques

1. Survey Feedback
2. Team Building
3. Sensitivity Training
4. Management by Objectives
5. Brain Storming
6. Process Consultation
7. Quality Circles

4
Survey Feedback

- Information is collected through survey method. This is

the most popular and widely used method of data
collection. The managers use this information collected
through survey for making decisions. The wide range of
data is collected regarding working conditions, quality of
work, working hours, wages and salaries, attitude of
employees relating to above.

5
Team Building

- This method is specifically designed to make

improvement in the ability of employees and motivating
them to work together. It is the organization development
technique which emphasizes on team building or forming
work groups in order to improve organizational
effectiveness.

6
Sensitivity Training

- It is also known as laboratory training. Under this

technique the employees in groups are asked to interact.
The aim of sensitivity training is to help people understand
each other and gain insight so that they feel free and
become fearless.

7
Management by Objectives (MBO)

- MBO is a technique of management development which was put

forward for the first time by Peter Drucker in 1954. It is a method of
achieving organizational objectives and a technique of evaluation and
review of performance. Under this method objectives of the
organization are fixed and responsibility to achieve them lie on the
managers and results are expected from them.
- George Odiorne observed that MBO is, “a system wherein superior
and subordinate managers of an organization jointly identify its
common aims, define each individual’s major areas of responsibility in
terms of the results expected of him and use these measures as
guides for operating the unit, assessing the contribution benefits of its
members.”
8
Brainstorming

- It is a technique where a group of five to eight managers

come together and find a solution to a problem. As the name
suggests it involves storming of the brain to develop creativity
in thinking. It gives rise to new ideas. The principle involves in
it is that any idea, thought or plan put forward in a meeting
must be critically evaluated. The participants are asked to
come forward with novel ideas generated in their mind. It
works on a premise that everyone has a creative mind and
capability to generate new ideas.
9
Process Consultation

- The technique of process consultation is an

improvement over the method of sensitivity training or T
Group in the sense that both are based on the similar
premise of improving organisational effectiveness through
dealing with interpersonal problems but process
consultation is more tasks oriented than sensitivity
training.

10
Quality Circles

- Under this system a group of 5 to 12 come together at

their own free will during working hours once in a week
and discuss out the problems and suggests solution to the
management for implementation. The supervisors remain
present during the meeting. Quality Circles have their
origin in Japan in nineteen sixties which improved the
quality, reduced cost and heightened the morale of the
workers.

11
 MANAGING
ORGANIZATIONAL
CHANGE AND
DEVELOPMENT
SPECIAL ISSUES IN
ORGANIZATIONAL DEVELOPMENT

1. Do the Techniques Work?

2. Are they Ethical?
1. Do the Techniques Work?

It is clear that carrying out these

techniques requires a considerable
amount of time, money and effort.
Accordingly, it is appropriate to ask
if this investment is worthwhile.
Among the different types of OD interventions
studied; survey feedback, QWL, MBO, and team
building, the investigators categorized the
research with respect to whether they found the
effects of the interventions to be beneficial,
harmful or nonexistent. The outcomes studied
were both individual and organizational in
nature. A sizable percentage of the studies found
the effects of the various interventions to be
beneficial-mostly in the area of improving
organizational functioning.
Any conclusions about the effectiveness of
Organizational Development should be qualified
in several important ways.
D e s p i te th e i mp or tance of attem p ti ng to
e val uate th e effecti veness of
O r gani z ati onal D evel op m e nt
i nte r ve nti ons , m any of th em go
une val u ate d. A l th ough th er e ar e
undoubte dl y m any r easons for th is, one
k e y factor i s th e di ffi cul ty of assessi ng
C HA NGE .
In conclusion, despite some limitations, organizational
development is an approach that shows considerable
promise in its ability to benefit organizations and the
individuals working within them.
 2. Is Organizational Development
Inherently Unethical?

By its very nature, Organizational Development applies powerful

social science techniques in an attempt to change attitudes and
behavior.

From the perspective of a manager attempting to accomplish various

goals, such tools are immediately recognized as very useful.
However, if you think about it from the perspective of the
individual being affected, several ethical issues arise.

1. Organizational Development techniques impose the

values of the organization on the individual without
taking the individual’s own attitudes into account.

2. Unequal power relationship between the organization

and its employees makes it possible for the true intent of
Organizational Development techniques to be
misrepresented.
Despite these considerations, many professionals do not
agree that Organizational Development. is inherently
unethical.

After all, the very act of going to work for an organization

requires one to submit to the organization’s values and the
overall values of society at large.
The ethical use of Organizational Development. Interventions
will require that they be supervised by professionals in an
organization that places a high value on ethics. To the extent
that top management officials embrace ethical values and
behave ethically themselves, norms for behaving ethically are
likely to develop in organizations.

When an organization has a strong ethical culture, it is unlikely

that Organizational Development Practitioners would even
think of misusing their power to harm individuals
The need to develop such a culture has been recognized as
a way for organizations to take not only moral
leadership in their communities, but financial leadership
as well.
Thank you!